INTERVIEW - MUKESH AMBANI

The much contested launch of Reliance India Mobile service promises to shake the industry, cut tariffs and test the Ambanis' ability to succeed against odds

advertisement

December 30, 2002

ISSUE DATE: December 30, 2002

UPDATED: December 30, 2002 00:00 IST

RELIANCE INFOCOMM CHAIRMAN MUKESH AMBANI SHARES WITH Associate Editor VIVEK LAWthe challenges in executing his biggest venture. On why Reliance opted for limited mobility The spectrum that was being offered in the fourth round of bidding for cellular services was not compatible with the CDMA technology we had opted for. Therefore, we had to go through the limited mobility route. Even now we are ready to move to a fifth cellular licence if we get the same spectrum. After immense discussions we realised that for data at affordable rates, CDMA wins hands down. We are obsessed with affordability.

On what will happen if limited mobility is prevented We do not believe that in a democracy like ours you can prevent an enterprise from delivering value to consumers. We find it amusing that leading MNCs are writing letters to the prime minister seeking protection.

On Reliance Infocomm's focus We are betting heavily on data. We want to put a computer into your mobile phone. And at a price that is affordable to most Indians.

On competition The mobile telephony market will go up to 16-20 million by the end of March 2004 and we should have a 20-25 per cent share. Today, the dominant players are MNCs and they have deep pockets, perhaps far deeper than ours. We need to get crores of subscribers and deliver value to them.

On chances of succeeding in retail Going retail is our biggest challenge. We are doing it after Vimal's launch almost 20 years ago. We have worked very, very hard on it and put in place systems and procedures to achieve this.

On charges of predatory pricing We first fix what the customer can afford to pay. And then we work towards adopting that technological configuration which enables us to ensure that affordability. We are offering the same carrier rate to everyone. Our costs are there for all to see.

Get real-time alerts and all the news on your phone with the all-new India Today app. Download from